Recently the cateatpeanut and Windranger Labs have proposed a Bit purchase program soft proposal.
Please see soft proposal 1995
The proposal with the BitDAO Treasury can spend some funds to repurchase the $BIT from publicly available secondary markets and explore the possibility to burn of $BITstarted from 2022 June 1st.
The idea of purchasing and burning $BIT is fantastic, but we think it is limited to the development of the ecology.
BitDAO is young, and the whole ecology system is still growing. In the long run, we shall focus on creating a mechanism to increase community consensus, empowerment and then increase self-cashflow ability.
Why Liquidity Staking NFT is better than repurchase and burn?
The idea is as below:
To better gather community awareness to reduce the selling pressure (For price purposes? if you care about this!?). Top priority, we need to increase our cash flowability and create a new product for the BIT holders as an incentive to lock their tokens.
The current contribution is composed of 50% ETH and 50%USDT/USDC. More details here: BitDAO | Analytics
However, we should increase the type of assets in the vault, especially the POS blockchains, which have high TVL and promising future, instead of betting on all the chances on
$ETH, even Ethereum is the queen of L0.
For example, POS chain like
$AVAXwould be good choice to do the liquidity staking.
The community can discuss more assets in the future.
BITDAO treasury shall use more tokens on liquidity staking; some project like
Marinade.Finaceis huge and safe enough for the community to consider.
People need to consider how long the DAO can live on the investment from
Bybit. - The child shall grow up in one day. And therefore, building a “passive income” becomes a matter of urgency.
Considerable supply of BIT has its own reason
- We believe that the huge total supply in the original BITDAO design has its reason. The considerable supply can offer BITDAO to better invest and exchange the token from other promising projects. The early investment will bring significant income shortly.
With this viewpoint, we don’t think burning can help the ecosystem grow better but is limited to increasing short-term buying power.
- What is a better idea for decreasing the short-term selling pressure. The radical tips are cohesion of centripetal force, more specifically, enhancing the consensus and recognition of BITDAO.
Maybe transfer/lock some token to BITDAO NFT?
- Maybe Launching a BITDAO NFT, giving the bitdao holder a chance to have more functionality. Each NFT can mint and lock by a different amount of bit token. The BITDAO NFT can provide the holder the voting empower and interest from the above liquidity staking rewards so that we can generate a positive incentive to hold bit and decrease the selling pressure in the short term.
Success example. e.g. MNDE(mSOL)
- Recently, the MarindaeFinance (mSOL) have launched its own MNDE NFT project, which is an extremely good example. They use the locked NFT to decrease the selling pressure of MNDE tokens and gathering the community consensus. I am not saying they got a huge success right now, but it is an exotic idea to try.
Strong enough story for marketing (narrative)
- The functional NFT concept is hot right now. If the BITDAO community has this token-locked NFT, we shall be on trend again. Meanwhile, our total supply token won’t just burn and disappear, letting the future has the chance to exchange more profitable/ promising projects into our BITDAO family.
Welcome further discussion and sharing.
Lovely Bit Holder